New tax cut

[DisDreamer]

My brother could also use the $800 he would get for his kids, however, he pays very little in - gets it ALL back PLUS claims head of household and gets an add'l $1,000 give or take a couple hundred -- so, in essence he gets back everything he paid in PLUS another $1,000. A lot of people don't know about these things when they're thinking 'well what about poor so-and-so, he just doesn't make any money and has all those kids, why isn't he getting any of this money back'. It's because they've already gotten everything back, plus more. I hope everyone has a better understanding after reading this post and also Alice28's post.

Me? Well, I'm looking forward to getting my $1,200 -- $400 will pay for oldest DD's scuba lessons and the other $800 will pay for my other two DD's Disney trip next summer! WooHoo!!

 

[Geebs]

jlp651 -- I agree with you completely. People without kids tend to get screwed on things like this.

Everything for couples is higher...like insurance (trust me...I work for an insurance company and the rates for a couple are 2 times that of a single..but the family isn't 3 times higher)..

It stinks, because singles or couples are more likely to blow their money on vacations and frivoulous things.

Oh well...i guess we are out of luck.

 

[poober25]

It's true that those without children will not be getting any checks this summer, but the tax cut itself is not just for people with children. All tax rate brackets have been reduced by 2%, the standard deduction for married filing jointly has increased to 2x that of single filers (i.e. no more marriage penalty), capital gains tax has decreased, as well as some other changes that I don't know much about. Anyway, the point is that EVERYONE benefits from this tax cut in one way or another. Yes, those with children benefit more, but their everyday (basic) living expenses are higher, too. (No flaming, please, I am talking about basic necessities of life, not any discretionary spending.)

 

[rlduvall]

Someone mentioned that the child tax credit was retroactive for 2002 and then you get the full $1,000.00 for your 2003 taxes when you file next year. That's not true. The $400.00 per child we get this year is an advance rebate and applies to the 2003 $1,000.00 tax credit. In other words, when filing for 2003, if you received the 400.00 per child rebate, you only get the remaining 600. What a nice windfall.

 

[crazymomof4]

Originally posted by poober25
Yes, those with children benefit more, but their everyday (basic) living expenses are higher, too. (No flaming, please, I am talking about basic necessities of life, not any discretionary spending.)

I've got to agree with that! I was thinking that if someone who is childless wants to pay just for the FOOD my 13 yo DS eats in a year, I'd gladly fork over the $400. tax credit to them. Ha Ha

 

[TreeOfLife]

Does anyone know if there's a calculator to estimate your advance pay based on your particular situation?

 

[wdwfan]

Yippeeeeeeeeeeeeee!!!!!!!!!!

I'll be looking forward to my $800 check this summer!

 

[coachv]

Those who pay more taxes are going to get more back. Those who pay nothing or very little get nothing back. Put aside the politics and look at it. 95% of all taxes collected come from those who make $50 thousand or more. This is my new motto----Tax cuts never caused a budget deficit, overspending does!!!! Everyone enjoy your vacations and more money.

 

[disneywith6kids]

Yipee!!!!!!! That'll be a $2,000 check for us-DD is too old so we can only count 5 of the 6. Before you get jealous though, you can't imagine the cost of raising 6 kids. Our food bill is outrageous not to mention the cost of 2 hotel rooms everywhere we go. Annual passes were about 4 grand. So I guess I have to say everything is relevant

 

[DianeV]

Originally posted by rlduvall
Someone mentioned that the child tax credit was retroactive for 2002 and then you get the full $1,000.00 for your 2003 taxes when you file next year. That's not true. The $400.00 per child we get this year is an advance rebate and applies to the 2003 $1,000.00 tax credit. In other words, when filing for 2003, if you received the 400.00 per child rebate, you only get the remaining 600. What a nice windfall.

No I dont think thats true. This goes back from what I read and will apply to 2003 and then it will be done. Check out the IRS site.

 

[Geebs]

I didn't and don't want to start a war here, but no one made you have kids that cost so much to raise. It just seems unfair that couples who don't have kids have to bear the burden sometimes for choices that other people make. The point that I was really trying to make was that singles and couples can be more free with their money since they don't have to spend it on other people's needs ( ie school etc). they can go out and by that cd player with out thinking " oh..I have to by dear son's new shoes and put money away for his college". Please don't get mad at me....I guess I am just lashing out at politicians andtaking it out on my fellow Dis'rs... my apologies!
hey.... any bit of money that anyone can get is a great thing...I just wish a little more was coming my way!!

Food budget...I can match any kids budget. My husband is 7 feet tall and a runner...you can imagine what he consumes in a give day. Put it to you this way...at dinner we go through a gallon of milk. Not to mention his clothes...everything had to be special ordered...try almost $700 on a non brand name suit. ( needed for interviews and meetings and such). think about it...even ties and all that...not cheap at all!

I do have sympathies for those with the burden of families to raise but everyone has things that need to be cared for adn a little extra $$ would help!
Please don't hate me anyone!!!!

 

[smart cookie]

Originally posted by DianeV
No I dont think thats true. This goes back from what I read and will apply to 2003 and then it will be done. Check out the IRS site.

Eligible taxpayers could receive up to $400 for each child claimed on their 2002 returns as an advance payment of their 2003 Child Tax Credit

Basically they are using the info. from the 2002 return to determine who is eligable. So if you had a child in 2003, you will not get a check, BUT you will get any money that would have been due to you when you file in 2004 (for 2003).

I know....it's confusing

 

[DianeV]

Sorry I read it better. Evidently this is an advance payment of 2003s credit based on the amount of kids you deducted in '2002'. When you file your 2003 return you will get the regular $600 credit if you receive a check now and then in 2004s taxes you will get $1000 each and then it ends. Basically instead of waiting for your tax refund in March or April to get the difference they are giving it now. Probably to get the money back into the economy?

Its still a "windfall" because we didnt have it before.

As for the kids thing, if you read the whole plan people without kids will also benefit in that they will take home more in their checks along with some other things. They wont get a check now true.

 

[BibbidyBobbidyBoo]

Taxpayers receiving an advance payment should keep the IRS notice of the advance payment amount in order to properly complete the 2003 tax return. They will subtract any advance payment already received from the total amount (up to $1,000 per child) when figuring the credit for the 2003 return.

So it is coming from next year's child tax credit. Ours was 1800 last year (for 3 children) -so that means next year it will still be 1800 for 3 children- 600X3- correct???
Therefore I should be getting a $1200 check (400x3) now and STILL get the 1800 on my taxes last year just like last year. This is great! woohoo

 

[DMRick]

I'm all for you guys getting whatever you can. Although we made much less when our children were younger..costs were also much less. Sending a child to college (all three of them) sure was expensive, but nothing in comparison to what it is going to cost my children to sent theirs. College went up and are going up a lot more than their salaries!
We had different tax deductions in the "olden days" that young marrieds with kids don't have now..I remember if we bought a big appliance, we used to get to take that off our income tax owed. Same with gasoline tax. Heck, we even got to take part of the amount we paid for college until they did away with that.
I'm happy for you all, to see some money coming back into your pockets. And happy for us, as all the kids are out of the house and we have investments, and stock, to see the tax on those coming down.
Good for all of us, when the economy does better, because we are out spending! Remember what my mom always said..put some aside for a rainy day..hey, it rains a lot in the summer in Disney LOL!!

 

[BibbidyBobbidyBoo]

Hey, did they do this last year also? Maybe not the same amount but the same concept on a portion paid in advance?
because I sure do think I remember hearing talk of them doing this last year and I sure do NOT recall getting that advanced check. And I had $600 per child on my child tax credit on my taxes last year- isn't that the amount it was in total? It would have been less if I had received an advanced check (and I really think I'd remember if I had gotten it. I think I forgot because it was based on last name or ss # or something and I knew we'd be last- and then promptly forgot about it by the time that time came that the check should have been sent to us!)

So now I'm wondering- how come I didn't get this last year? We have had the child tax credit every year for all our children since they were born... or atleast since they started the child tax credit. I can't remember when it started but I sure do not think we ever had a year that we didn't use this. So I wonder if that means for SOME reason I won't get it advance this year either? I'll just have to wait and get $1000 per child when I do my taxes? I sure could use it BEFORE our Nov trip.

 

[BibbidyBobbidyBoo]

Ps. I so agree on the college thing. As IF the parents of children in college (even living out of the house- but some still live at home also!) are getting off any CHEAPER? I think not. In most cases paying MORE- for college/etc.
That's why we're paying in advance- Texas Tomorrow Fund. Almost have 4yrs college for each of 3 children paid off. It might not get them through ALL the college they want to do -but it will be a great start. I can't even IMAGINE how much college is going to cost by the time my little ones are going!

 

[Mickeyluver37]

I don't understand the gripes about college age kids. Once they are in college, the tax credits for school are actually more generous than the plain ole child tax credit. They even added a new deduction for expenses in 2002, in addition to the Hope and Lifetime Learning credits.

 

[BibbidyBobbidyBoo]

Oh, didn't know about that (don't have to know what doesn't effect me for many years LOL) -that's good they are getting tax breaks also.

 

[peg2001]

Originally posted by Geebs
I do have sympathies for those with the burden of families to raise but everyone has things that need to be cared for adn a little extra $$ would help!
Please don't hate me anyone!!!!

No flames from me. I honestly don't think the government should be using taxes and tax breaks to encourage/support life choices. So, whether you are married or not, have kids or not, own a home or not, drive electric cars or not, etc, etc, etc, should not impact taxes owed. Just my humble opinion, of course.

Peggy